Page 94 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
better, less expensive global supply chain links and new trade deals. Many companies lack the capacity to navigate
markets for goods, as well as some roles in building this this maze of rules, and consequently, utilization rates are
ambitious infrastructure initiative. Time will tell how very low. Similarly, China has signed 130 transportation
sizable the opportunities will become (Lynch). deals. Some of these efforts should eventually be
consolidated. It would be encouraging to see the Belt
The President of the European Bank for Reconstruction and Road move toward a more multilateral approach,
and Development (EBRD) believes that China’s Belt and unifying some of these related but fragmented efforts.
Road Initiative will be a transformative benefit in areas To succeed, the Belt and Road Initiative must become a
where the development bank has worked for many years. strategy. A Belt and Road strategy would not only benefit
The core values of China’s Belt and Road Initiative are China but also the broader international community. It
shared by the EBRD, its President Suma Chakrabarti told would focus on a narrower range of objectives and set
Xinhua, saying, “There is very much an overlap between priorities so resources are used more efficiently. It would
what we do and the Belt and Road Initiative.” He noted embrace and enforce clear standards. It would use lofty
that such values as integration, green development, and rhetoric sparingly. In becoming a strategy, the Belt and
inclusiveness were repeatedly mentioned during the Belt Road could also become a better vehicle for regional
and Road Forum for International Cooperation held in integration and, ultimately, contribute more to the global
Beijing in May 2017, which are also part of the core values economy. The Belt and Road has not even started its
of the EBRD. “If you look at the number of countries we implementation stage, which runs from 2022 to 2049. It is
work in, 37, then 32 of them are on the Belt and Road currently in the “strategic planning” stage (Hillman).
initiative,” he said. “We have become really rather big
in Central Asia which is the heart of the Belt and Road The Communist Party of China (CPC) has incorporated
Initiative.” Chakrabarti said that EBRD’s investment has pushing for Belt and Road development into its
increased by about 75 percent annually in the past few Constitution, according to a resolution approved by
years in Central Asia with a total of $12 billion. He also the 19th CPC National Congress. The congress agreed
highlighted the importance of private sector in the to write into the Constitution “following the principle
construction of the China-proposed initiative, “We think of achieving shared growth through discussion and
the Belt and Road Initiative cannot be a success without collaboration, and pursuing the Belt and Road Initiative,”
a huge focus on private sector investment - energy or according to the resolution. Proposed by Xi Jinping in
transportation or whatever sector, soft or hard sector you 2013, the Belt and Road Initiative aims to build a trade
need multilateral investment banks to be involved. You and infrastructure network connecting Asia with Europe
need a mixture of investments, but also policy reform and Africa along and beyond the ancient Silk Road trade
work to attract more investors into these countries” routes. It comprises the Silk Road Economic Belt and the
(Song, Interview). 21st Century Maritime Silk Road (Xi Jinping Thought).
China has a huge potential consumer market, lower Applied wisely, the Belt and Road and supporting
labor costs, excess capacity and ample foreign exchange institutions could be vehicles for China to play an
reserves; the West has advanced technology reserves increasingly important, cooperative and beneficial role
and management experience. As China’s infrastructure in the international system. The bulk of financing is likely
continues to improve and the international talent pool to come from the China Development Bank, China Exim
is becoming more complete, an increasing number of Bank, New Silk Road Fund and state banks. The AIIB and
international companies include the Chinese market in New Development Bank can add global expertise and
their future business planning. One Belt One Road is not legitimacy as well as funding. Together, they could enable
only the introduction of capital and technology. More China to deploy capital, technology and engineering
importantly, it emphasizes the geographical advantages capacity to help millions escape poverty, just as it has
and the regional synergies (Jomec). As an open-ended done at home. But this will have to be balanced with
framework, the Belt and Road has wide support, but its factors at the country and local level. Belt and Road
power as a vehicle for regional integration is unclear. In projects will have to contend with a myriad of complex
some respects, it is a new banner for existing bilateral political, security and social situations. These include
efforts. For example, China is aiming to complete trade terrorism, violent extremism, inter-ethnic tensions,
agreements with 40 percent of Belt and Road participants xenophobia, brittle authoritarian regimes, and political
by the end of 2017. But Asia is already a sea of bilateral systems and behaviours that perpetuate high levels of
94
better, less expensive global supply chain links and new trade deals. Many companies lack the capacity to navigate
markets for goods, as well as some roles in building this this maze of rules, and consequently, utilization rates are
ambitious infrastructure initiative. Time will tell how very low. Similarly, China has signed 130 transportation
sizable the opportunities will become (Lynch). deals. Some of these efforts should eventually be
consolidated. It would be encouraging to see the Belt
The President of the European Bank for Reconstruction and Road move toward a more multilateral approach,
and Development (EBRD) believes that China’s Belt and unifying some of these related but fragmented efforts.
Road Initiative will be a transformative benefit in areas To succeed, the Belt and Road Initiative must become a
where the development bank has worked for many years. strategy. A Belt and Road strategy would not only benefit
The core values of China’s Belt and Road Initiative are China but also the broader international community. It
shared by the EBRD, its President Suma Chakrabarti told would focus on a narrower range of objectives and set
Xinhua, saying, “There is very much an overlap between priorities so resources are used more efficiently. It would
what we do and the Belt and Road Initiative.” He noted embrace and enforce clear standards. It would use lofty
that such values as integration, green development, and rhetoric sparingly. In becoming a strategy, the Belt and
inclusiveness were repeatedly mentioned during the Belt Road could also become a better vehicle for regional
and Road Forum for International Cooperation held in integration and, ultimately, contribute more to the global
Beijing in May 2017, which are also part of the core values economy. The Belt and Road has not even started its
of the EBRD. “If you look at the number of countries we implementation stage, which runs from 2022 to 2049. It is
work in, 37, then 32 of them are on the Belt and Road currently in the “strategic planning” stage (Hillman).
initiative,” he said. “We have become really rather big
in Central Asia which is the heart of the Belt and Road The Communist Party of China (CPC) has incorporated
Initiative.” Chakrabarti said that EBRD’s investment has pushing for Belt and Road development into its
increased by about 75 percent annually in the past few Constitution, according to a resolution approved by
years in Central Asia with a total of $12 billion. He also the 19th CPC National Congress. The congress agreed
highlighted the importance of private sector in the to write into the Constitution “following the principle
construction of the China-proposed initiative, “We think of achieving shared growth through discussion and
the Belt and Road Initiative cannot be a success without collaboration, and pursuing the Belt and Road Initiative,”
a huge focus on private sector investment - energy or according to the resolution. Proposed by Xi Jinping in
transportation or whatever sector, soft or hard sector you 2013, the Belt and Road Initiative aims to build a trade
need multilateral investment banks to be involved. You and infrastructure network connecting Asia with Europe
need a mixture of investments, but also policy reform and Africa along and beyond the ancient Silk Road trade
work to attract more investors into these countries” routes. It comprises the Silk Road Economic Belt and the
(Song, Interview). 21st Century Maritime Silk Road (Xi Jinping Thought).
China has a huge potential consumer market, lower Applied wisely, the Belt and Road and supporting
labor costs, excess capacity and ample foreign exchange institutions could be vehicles for China to play an
reserves; the West has advanced technology reserves increasingly important, cooperative and beneficial role
and management experience. As China’s infrastructure in the international system. The bulk of financing is likely
continues to improve and the international talent pool to come from the China Development Bank, China Exim
is becoming more complete, an increasing number of Bank, New Silk Road Fund and state banks. The AIIB and
international companies include the Chinese market in New Development Bank can add global expertise and
their future business planning. One Belt One Road is not legitimacy as well as funding. Together, they could enable
only the introduction of capital and technology. More China to deploy capital, technology and engineering
importantly, it emphasizes the geographical advantages capacity to help millions escape poverty, just as it has
and the regional synergies (Jomec). As an open-ended done at home. But this will have to be balanced with
framework, the Belt and Road has wide support, but its factors at the country and local level. Belt and Road
power as a vehicle for regional integration is unclear. In projects will have to contend with a myriad of complex
some respects, it is a new banner for existing bilateral political, security and social situations. These include
efforts. For example, China is aiming to complete trade terrorism, violent extremism, inter-ethnic tensions,
agreements with 40 percent of Belt and Road participants xenophobia, brittle authoritarian regimes, and political
by the end of 2017. But Asia is already a sea of bilateral systems and behaviours that perpetuate high levels of
94
